Fed Update – FXWW Chatroom

FED: Yellen’s mon-policy testimony essentially repeats her Friday speech — USecon is better (but there’s still some slack in labor mkts) and has goodprospects. First hike is coming likely this yr, but decision is on ameeting-by-meeting basis. Street is too focused on initial Fed step, expectedpath matters more and will be gradual – key is policy will remain accommodativefor some time. Uncertainties incl Greece & China; US$ headwind should diminish.The formal testimony is completely in line with expectations, should not movemkts. Yellen also veers into how Fed is transparent and accountable, perhaps anattempt to head off some criticism. The testimony will be read to the Committeeafter 10am, and Q&A should begin some time after 10:30am ET, moving ‘event risk’far out into late-morning in NY time.